Singapore income tax and CPF calculator
Take-home pay after income tax and CPF, with the monthly Ordinary Wage ceiling and the age band that sets your contribution rate.
Covers Year of Assessment 2026 · rates as at 2026-01-01
Take-home pay
Estimate$108,333
5.5% effective tax against a 11.5% marginal rate
- Income tax
- $7,467.00
- Your CPF at 20.0%
- $19,200
- Employer CPF
- $16,320
| Annual salary | $120,000 |
|---|---|
| Bonus | $15,000 |
| Salary CPF applies to | $96,000 |
| Your CPF contribution | -$19,200 |
| Reliefs | $19,200 |
| Chargeable income | $115,800 |
| Income tax | -$7,467.00 |
| Take-home | $108,333 |
- The Ordinary Wage ceiling is $8,000 a month, so CPF applies to $96,000 of your salary and nothing above it.
- Contribution rates step down with age. At 36 you contribute 20.0%, and the rate falls again at 55, 60, 65 and 70.
On $120,000 the monthly salary is $10,000, above the $8,000 CPF ceiling — so CPF applies to $96,000 and the top $24,000 attracts none.
How this is calculated
How this is calculated
The CPF ceiling is monthly, not annual
Contributions apply to at most $8,000 of each month’s salary. On $120,000 that means CPF on $96,000 and none on the remaining $24,000 — applying an annual cap to the full salary gives a different, wrong answer.
CPF salary = min(monthly salary, 8,000) × 12Rates step down with age
Employees contribute 20% to age 55, then 17%, 11.5%, 7.5% and 5% in later bands, with employer rates falling alongside. Two people on the same salary take home different amounts purely because of age.
CPF reduces the tax base
Employee CPF is relieved against income up to $20,400, and all reliefs together are capped at $80,000. Chargeable income is therefore salary plus bonus less those reliefs, not gross pay.
chargeable = salary + bonus − reliefsWorked example: $120,000 salary plus a $15,000 bonus, age 36
| Salary | $120,000 |
|---|---|
| Bonus | $15,000 |
| Age | 36 |
| CPF applies to | $96,000 |
|---|---|
| Your rate | 20% |
| Employer rate | 17% |
At 56 the same salary would attract 17% employee CPF instead of 20% — roughly $2,880 less into CPF and more in your pocket, with a correspondingly smaller relief.
What this assumes
- Singapore citizen or permanent resident.
- A tax resident for the full year.
- CPF relief only unless other reliefs are entered.
- No rental or trade income.
Where this commonly goes wrong
- A bonus is Additional Wage and has its own ceiling based on the year’s Ordinary Wages, so CPF on a bonus is frequently lower than the headline rate suggests.
- Non-residents are taxed at a flat 15% on employment income or the resident rates, whichever is higher, and receive no reliefs at all.
- The $80,000 personal relief cap means additional reliefs such as SRS or voluntary CPF top-ups stop reducing tax once the cap is reached.
Questions
How much CPF do I contribute?
20% of Ordinary Wages up to $8,000 a month if you are 55 or under, with your employer adding 17%. On $120,000 that means CPF on $96,000 of salary and none on the rest.
What is the CPF salary ceiling?
$8,000 of monthly Ordinary Wages. It is a monthly cap rather than an annual one, so salary above $96,000 a year attracts no further Ordinary Wage CPF at all.
Do CPF rates change with age?
Yes, at 55, 60, 65 and 70. Employee rates step down from 20% to 17%, 11.5%, 7.5% and 5%, with employer rates falling too, so age materially changes take-home on the same salary.
Does CPF reduce my income tax?
Yes. Employee CPF is relieved against income up to $20,400, and all reliefs together are capped at $80,000. Chargeable income is salary plus bonus less those reliefs.
Is my bonus subject to CPF?
Under the Additional Wage ceiling, which is calculated from your Ordinary Wages for the year rather than the monthly cap. The effective CPF rate on a bonus is often lower than on salary.
How much income tax will I pay on $120,000?
The first $20,000 is untaxed and rates rise through 13 bands to 24%. After CPF relief the chargeable income is well below gross, so the effective rate lands far below the marginal one.
Related tools
Sources
General estimate based on published IRAS and CPF Board figures for Year of Assessment 2026. Not tax advice. Confirm your position with IRAS or the CPF Board.
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